The case in brief
- Client: Expat in Switzerland
- Property type: Investment property to be let to students
- Property value: £ 2,000,000
- Loan Amount: £1,300,000
- LTV: 65%
Bridging finance is a lesser-known segment of the mortgage market, although it is increasingly used as it offers fantastic solutions for a wide range of financing scenarios.
Our client / the security
In this case, we were approached by a client seeking a bridging loan to remortgage two slightly unusual properties next to each other under one title. With a plethora of alternative uses for the two properties, the client was first looking to raise capital on this unencumbered property.
The two properties had four individual flats situated in each. The client was looking to maximise their investment potential by letting them out to students. The properties needed heavy refurbishment to ensure they were on spec and liveable. The client was a self-employed ex-pat living in Switzerland. The self-employed element is usually a significant sticking point for lenders, who prefer the security of a full-time job with guaranteed monthly income.
To find out more about property finance for overseas clients, explore our page UK Mortgages For Residents in Switzerland.
Our solution
Unfazed by the complexity, after an initial call with the client to fully understand their need and requirements for the project. Articus set out to pinpoint not just a great deal for the client but a financial option that would support their long-term goal of refurbishment and exit of the bridging loan.
As such, we sourced a well-established lender who was keen to back the project. The interest on the Bridging loan was rolled-up and didn’t need to be repaid until the end of the term along with the loan – this feature further helped Articus find a niche lender that could pay back the initial mortgage amount and all the interest. Exiting onto a more competitive rate.
As an independent brokerage, we have access to over 500 different lenders/banks/institutions and very solid relations with many of them, allowing us to negotiate on behalf of our clients.
At Articus, we have completed some of the most complicated and sensitive bridging cases.